1ST QUARTER: DUPONT'S SALES DOWN 3%, EARNINGS UP 5%
Apr. 18, 2014
Source: DuPont news release
To read the entire report click here.
First Quarter Highlights
*Substantial earnings increases and operating margin improvement across most segments including: Safety & Protection; Electronics & Communications; Nutrition & Health; and Industrial Biosciences.
*Strong sales volume growth outside the Americas. Combined European and Asian developing markets volume up 10 percent;
*Europe, Middle East, & Africa volumes up 6 percent. Volume growth in the Americas constrained by shifts in timing and planted area in agriculture and the impact of harsh weather.
*Adverse weather conditions reduced first quarter earnings by an estimated $.07 per share reflecting increased operating costs and lost sales.
*Productivity initiatives, share repurchase program and Performance Chemicals separation remain on track.
*The company reaffirms full-year operating earnings guidance of $4.20 to $4.45 per share.
DuPont (NYSE: DD), a science company that brings world- class, innovative products, materials, and services to the global marketplace, today announced first quarter 2014 operating earnings of $1.58 per share compared to $1.56 per share in the prior year. GAAP1 EPS was $1.54 versus $1.47 last year.
Consolidated sales were $10.1 billion, 3 percent below last year, principally due to differences in timing and planted area for Agriculture sales, negative currency impact, and adverse weather conditions in North America. However, volume grew in each of DuPont's industrial related segments and operating margins increased in 6 of 7 segments versus last year's first quarter.
"We achieved substantial earnings growth in most of our segments in the first quarter as we advanced our strategic and operational priorities," said Ellen Kullman, DuPont Chair and CEO.
"We delivered near record earnings per share despite the challenges of harsh weather and differences in year-on-year comparisons in our Agriculture Segment, and our key initiatives remain on track. I'm pleased with the progress we are making to deliver further value to shareholders and strengthen DuPont's position as an engine of science-driven innovation."
"Looking ahead, we will continue to operate our businesses with focused discipline and increasing productivity. We expect steady growth in industrial production to continue to drive increases in demand for DuPont products worldwide. As a result, we are reaffirming our outlook for operating earnings per share growth in 2014," said Kullman.
Agriculture - Operating earnings of $1,442 million declined $74 million, or 5 percent, on lower volumes due to the earlier timing of seed shipments realized in the fourth quarter of 2013 versus the first quarter, lower corn planted area in Brazil's Safrinha season and in North America, and lower herbicide volumes in North America. This was partially offset by pricing gains in seeds, higher insecticide volumes in Latin America, and lower seed input costs.
The company reaffirms its outlook for full-year 2014 operating earnings of $4.20-$4.45 per share, an increase of 8-15 percent from $3.88 per share earned in 2013, based on anticipated growth in global industrial market demand. The company also expects it will earn about 70 percent of its full year operating earnings per share in the first half.